Omaha daily bee., 1887-05-13
NUMBER 32g
HE WASN'T AFRAID OF GOULD
Morisini Takes the Stand Before the Pa.
cifc Investigating Commission.
THE WIZARD" CLoSE.MoUTHED.
Russell Sage Examined and Exhibits
Remarkable Forget fulncss Con-
corning Certain OF His
Transactions.
The Union Pacific luycstipatiou.

NEW IoRK, May 12.-lnvestigation before
the Pacific railway commission opened to-
day with q. r. Morosini on the stand. He
was OF the firm of w. {. Copnor n Co., bankers
and brokers, in 1879 to 1855. Jay Gould and
his son George were also members of the
firm. Witness knew nothing of the books of
the firm. IL never asked Gould where they
werc.' said the witness, "but Mr.. Gould tes-
titled on the stand that he knew nothing
them. Gould is man of few words and l
did not bother him about IT,"
Commissioner Anderson asked Morosini
Are you afraid OF Mr. Goud?'
IL am not afraid of anything. [ tried in
every way III my power to find the books, but
was large holder of Union
Pacific stock, which he kept in his
vault. l don't know that he had made large
purchases of Kansas Pacific stock just prior
| signed the ratification tor consolidation as
holder of over S2,OOO,oOO of Kansas Pacific
stock. j owned no such stock. They some
times put stock in other peoples hands for
convenience, and that might have been the
case In this matter.
meanr'
II suppose Mr. Gould"
Then when you say they you mean Mr..
Gould every time?'
mfr. Gould and his friends who desired it
| tion because l was told it was tor the mutual
| interest of the roads,
Russell Sage, who has been banker and
| broker for over twenty years, was examined
| as to his books kept from 1873 to 1850 and his
| lical employees at that time. He said: Il
made my first purchases of stock of the Union
Pacific in 1869 or $50, paying therefor 26 or
| 81 cents about 1000 shares. | was requested
| to serve as a director OF the road because l
| was a large stakeholder" Sage produced the
record of his dealings, in Kansas Pacific stock
| and bonds from July, 1870, to February,
1850, and promised a similar record with ref
| erence to the st. Joseph n Western. lie
| knew of the st. Louis pool in 1878 and was
interested in it to the extent of $4,000, 600. II
Missouri Pacific securities" 1 think that l
had no personal interest in the securities
which were exchanged for the 3,4Oo, 900 con-
| solidated bonds. | don't remember who
| owned these securities, but think that Gould
| was interested in them.'
| Nathan Niles, government director of the
Union Pacific for the year 1879 swole that he
| Union Pacific. lie knew nothing of an ar
rangement by which Jay Gould was to take
| consolidated bonds in return for other secu-
formation, relied strongly on the advice of
| my associate, George b. Smith, of DeS
Moines, on the matter of my action regard
| ing the consolidation. l remember having
ter save with the government directors. Tho
| government directors had a seperate organi-
zatiOn, of which l was chairman. Mr.. Smyth
kept the minutes of the proceedings. l do
not know where they are.
Russell Sage was recalled and questioned
about the Denver Pacific stock held by him
self and Gould as trustees. Sa @ said he
thought the 30, 9SG shares were in his vault at
the safe deposit cOmpany's, but Commits
sOner Anderson reminded him that they
had been removed from the trust by local
action. In respect to this suit he could not
recall the details. lie even forgot that Dill
| Ion and Holmes were counsel for the OppO.
stion instead of, as he stated, counsel for
himself and Mr.. Gould. I'm explanation Of
his torgetfulness he said he always closed up
morning. and and hence " could 'f not be- bee" eXpected
te remember much about the transactions Of
nine years ago. In the duel capacity OF
| stockhOlder of the Kansas Pacific and Union
| Pacific, he signed the ratification of the con-
| solidatiOn. He represented 9,7T shares of
stocks of the former road and $4,000 shares
| of the latter. Adjourned.